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Traders are puzzled by an anomaly in India's rupee forwards, where 12-month implied yields rose about 52 basis points to near a two-year high despite the Reserve Bank of India's third rate cut this year. Some traders suspect the RBI has been buying dollars in the spot market to curb rupee appreciation and offsetting the liquidity impact in forwards.
Forward premiums reflect rate differentials and currency liquidity, so the anomaly signals tighter rupee liquidity and possible central bank intervention. For feed buyers importing from or pricing in India, this adds uncertainty to rupee-denominated costs.
livemint.comBloombergJun 24, 2019Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
